SL Green Realty Corp. Q1 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026, for SL Green Realty Corp. (SLG) and SL Green Operating Partnership, L.P. (SLGOP). SL Green is a self-administered REIT focused on owning, managing, and developing commercial real estate, primarily office properties, in the New York metropolitan area. As of the reporting date, the Company owned 92.37% of the Operating Partnership, with noncontrolling interests holding 7.63%.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Total Revenues | $253.1 million | $239.8 million |
| Net Loss (GAAP) | $(77.4) million | $(21.5) million |
| Net Loss Attributable to Common Stockholders | $(84.4) million | $(21.1) million |
| Funds from Operations (FFO) | $64.6 million | $106.5 million |
| Operating Cash Flow | $(17.6) million (Used) | $6.7 million (Provided) |
| Total Debt (Consolidated) | $4.77 billion | $4.04 billion |
| Liquidity (Cash + Credit Availability) | $587.2 million | N/A |
| Weighted Average Leased Occupancy | 94.0% | N/A |
Material Changes vs. Prior Period
- Revenue Growth: Total revenues increased 5.5% year-over-year, driven by the acquisition of Park Avenue Tower ($15.6M revenue impact) and consolidations of 800 Third Avenue and 315 West 33rd Street. This was partially offset by the deconsolidation of 100 Park Avenue.
- Net Loss Expansion: The GAAP net loss widened significantly to $77.4 million from $21.5 million. This was primarily due to a $35.2 million impairment charge related to classifying 7 Dey Street as "held for sale."
- Joint Venture Performance: Equity in net loss from unconsolidated joint ventures turned negative at $(20.8) million, compared to $1.2 million income in Q1 2025. The prior year included a one-time $18.3 million gain from writing off a negative carrying value.
- Investment Income Decline: Investment income dropped 85.7% to $2.3 million, largely due to the absence of a $10.0 million interest payment received on a CMBS investment in the prior year.
- Debt Levels: Total consolidated debt increased to $4.77 billion from $4.04 billion, reflecting new financing for acquisitions and the 2026 Credit Facility amendments.
Outlook, Risks, and Unusual Items
- Unusual Items: The quarter included a $16.6 million gain on the sale of 690 Madison Avenue and a $35.2 million impairment charge for 7 Dey Street (agreed sale price of $220.5 million).
- Capital Markets: On March 18, 2026, the Company amended its credit facility (2026 Credit Facility) to include a $1.25 billion revolver, $300 million Term A, $100 million Term B, and $750 million Term C. Undrawn capacity stands at $418.0 million.
- Dividends: The Company declared a cash distribution of $0.618 per common share for the quarter.
- Risks: Key risks include dependence on the NYC real estate market, potential tenant bankruptcies, rising interest rates (though 86.1% of debt is fixed or hedged), and the ability to maintain REIT status. Management noted no material litigation as of March 31, 2026.
- Guidance: Management expects to incur $75.8 million in leasing capital expenditures and $31.7 million in recurring capital expenditures for the remainder of 2026.
Investor Verification Checklist
- Impairment Details: Verify the timeline and closing conditions for the $220.5 million sale of 7 Dey Street units to confirm the realization of the impairment charge.
- Joint Venture Exposure: Review the specific drivers of the $20.8 million loss in unconsolidated joint ventures to assess if this is a recurring trend or a one-time anomaly.
- Debt Maturities: Confirm the refinancing strategy for the $100 million Term B loan maturing in May 2026 and the $555 million in property mortgages maturing in the remainder of 2026.
- Occupancy Trends: Monitor the 94.0% weighted average leased occupancy, specifically the 79.6% occupancy in suburban office properties, against market trends.
- FFO vs. GAAP: Reconcile the $64.6 million FFO against the $(84.4) million GAAP net loss to understand the sustainability of cash flow generation excluding non-cash impairments.